Taylor Adams
Northern Nevada was hit exceptionally hard when the Great Recession hit in the late 2000s.
It took just a few years for many parts of the country to dig out from that unprecedented economic turmoil, but Northern Nevada’s economy remained tepid well into the start of the next decade. Gaming, tourism and hospitality, construction and distribution have long been the backbone of the regional economy, but after the crushing weight of that last recession business and civic leaders began redefining the economic pulse of Northern Nevada.
And how they succeeded. Today, technology, advanced manufacturing, e-commerce, renewable energy and logistics play an integral role in the regional economy – so much so that the high interest rate environment of the past few years that stifled business in other parts of the country was more of a minor speed bump rather than a total roadblock in the Truckee Meadows.
Taylor Adams, president and chief executive officer of the Economic Development Authority of Western Nevada, said the great strength of the regional economy lies in its diversity.
“It started about 15 years ago when this was a gaming-dominant market,” Adams said. “On the back end of the Great Recession, there was real work done to start diversifying employment use in the community. That made Northern Nevada more resilient. It started with growth in distribution and logistics, and continued to advanced manufacturing with Tesla.
“Manufacturing has continued to expand, and the tech industry started moving into the region,” he added. “In the last year we’ve also seen aviation and aerospace added to the mix. That diversity has made us a stronger, more resilient community than many of our peers could ever hope to be.
“Gaming and hospitality are still major contributors to our economy – they are the foundation the house was built on,” Adams continued. “But we are no longer in a place where a single industry has to carry the entire economy.”
We posed a couple of questions about the direction of the regional economy to Northern Nevada business leaders. Here are their responses.
Ann Silver, chief executive officer of Reno + Spark Chamber of Commerce
What are the biggest economic challenges and hurdles facing Northern Nevada?
One of the biggest challenges facing our region is the delicate balance between our preference for a quality of life that includes access to the outdoors and the beauty that surrounds us and the determination that we need more corporate growth, more jobs, more housing and required infrastructure.
What's the economic outlook for next year and next three years?
The Reno + Sparks Chamber of Commerce predicts robust entrepreneurship and the creation of new, smaller businesses that provide the goods and services our growing population relies upon each day. Small businesses drive our economy, and more individuals seek the freedom and experience of owning and operating on their own. The Reno + Sparks Chamber of Commerce is attracting 30 to 40 new members each month and offering more educational events and programs to meet the needs of these emerging ventures.
What ongoing projects is The Reno + Sparks Chamber of Commerce involved in that will be the most impactful for Northern Nevada?
The Reno + Sparks Chamber of Commerce has expanded its services in response to growing needs in our community:
• Citizenship classes that enable more individuals the opportunity to respond to in-demand jobs
• CIVIC 101: a class to provide our members with a refresher on the operations of city, county, state and federal government
• Classes that provide both literacy skills and high school certification to assist with a trained workforce pipeline
• Green business certification classes to help businesses to introduce clean environmental practices
• Green dining establishment classes to help restaurants practice waste reduction, recycling and address consumer preferences
• Employee health and wellness events to assist employers with hiring and retention programs
• Introduction of its Pooled Employer 401(k) Retirement Plan for businesses of all sizes
• Establishment of our Center for Nonprofit Businesses to help build sustainability and best practices for nonprofits in our community that address growing social needs
• Workforce development training at the Nevada Cares Campus to assist homeless individuals in finding full time careers and gaining financial independence
• Its annual leadership program for emerging leaders who want access to professionals in education, criminal justice, social services, government, economic development and arts and culture
• Its annual executive leadership program in cooperation with Vistage for CEO/COO training in communication, conflict resolution, customer service and employee culture
Ann SilverMike Larragueta, president and chief executive officer, Reno Tahoe (Reno Sparks Convention and Visitors Authority)
What are the biggest economic challenges and hurdles facing Northern Nevada?
Regional efforts to improve visitor perception of this destination have been successful. The primary challenges facing Reno Tahoe center on competition with much larger destinations, such as Phoenix, Las Vegas and Austin. The RSCVA has been working with the Reno-Tahoe Airport Authority and Economic Development Authority of Western Nevada to close the gap between Reno Tahoe and more heavily populated destinations.
These three organizations helping to drive the local economy are working hand-in-hand to generate more nonstop air service opportunities to regional, and specifically, East Coast cities, engaging airline executives directly, and educating them on the growth potential of Northern Nevada. In addition, the RSCVA board recently approved increasing its Air Service Fund, which now has the potential to infuse up to $3 million per year into air service development.
What's the economic outlook for next year and next three years?
Reno Tahoe has experienced very positive growth in the number one visitation metric impacting the economy in Washoe County: taxable room revenue. Since July 2021, revenue records have been set for each of the 12 months on the calendar. While we can’t anticipate that type of growth to last forever, we are certainly making every effort through innovative sales and marketing strategies to ensure that the visitor economy continues to sustain the Reno Tahoe community.
A new event development initiative is intended to bring new and existing events, creating new attractions and visitation opportunities throughout the region. The RSCVA board of directors has also directed the organization to bolster community engagement efforts, so we’ve hired local public relations and marketing firm Good Giant to help us tell the RSCVA story to the community. We want to activate our champions at home who can help spread the message about why Northern Nevada is the perfect, year-round getaway destination. I think that will help drive success for Reno Tahoe as a destination marketing organization in the future.
What ongoing projects is RSCVA involved in that will be the most impactful for Northern Nevada?
The biggest opportunities for growth in visitation are related to regional needs periods, typically falling around the holiday season and throughout the colder months. The RSCVA board previously approved the purchase of a 200-meter Mondo Indoor Track, which will begin operating this December at the Reno-Sparks Convention Center. This will be the first-ever home track for the University of Nevada women’s indoor track team, and it will also provide the Reno Tahoe sports development team with a new opportunity to attract collegiate and USA Track and Field events. This is an aggressive initiative that falls perfectly in line with the additional visitation Reno Tahoe is seeking from December through February each year.
Mike LarraguetaKeith Lewis, executive director, Visit Carson Valley
What are the biggest economic challenges and hurdles facing Northern Nevada?
One of the primary challenges we’re encountering in Carson Valley is a noticeable decline in overnight stays. However, it’s important to highlight that we are seeing a strong increase in day traffic, which indicates that visitors are coming to the area but opting not to stay overnight as frequently.
While hotel stays are down, the overall revenue has not declined because room rates have increased. However, this raises a concern: at a certain point, the rising hotel prices could potentially discourage visitors. The best outcome would be to see flattening average daily rates while influencing an increase in overnight stays, ultimately driving up revenue while maintaining a competitive price point that doesn’t alienate visitors.
What's the economic outlook in Carson Valley for next year and next three years?
At Visit Carson Valley, we collaborate closely with other Destination Marketing Organizations (DMOs) across Northern Nevada, and we recognize that this trend of rising hotel rates isn't unique to our area. Several factors, including inflation, have led to an increase in average daily rates across many destinations. This means visitors are spending more on accommodations, which can leave them with less to spend at local businesses.
We anticipate this trend will continue, with hotel prices likely rising further. Our strategy is to fine-tune our marketing efforts, particularly during the shoulder and off-seasons, to attract visitors throughout the year. By doing so, we aim to sustain and even grow visitation despite the evolving market dynamics.
What ongoing projects is Visit Carson Valley involved in that will be the most impactful for Northern Nevada/Carson Valley?
What truly sets Visit Carson Valley apart is our commitment to data-driven marketing. We’ve recently hired a full-time destination marketing and data strategist and made significant investments in technology to better track visitor behavior. This allows us to be more precise and effective in our marketing initiatives.
We’ve also refreshed our “Legends of the Valley” campaign, and we’re actively seeking opportunities to host special events that encourage shoulder-season visits. Collaboration is key to our approach. We’re working alongside other DMOs in the region, recognizing that day-trippers today often become our overnight guests tomorrow.
One of the standout collaborative projects is the Cultural Corridor, which connects Carson Valley with Virginia City and Carson City. Together, we aim to preserve and promote the rich culture, history, and heritage of these destinations.
In addition, we’re focusing on creating memorable experiences for visitors, engaging them at multiple points across our destination rather than a few hotspots. Our goal is to make sure every visit leaves a lasting impression, encouraging guests to return year after year.
Keith LewisTaylor Adams, president and chief executive officer, Economic Development Authority of Western Nevada
What are the biggest challenges and hurdles facing Northern Nevada?
The biggest challenge facing Northern Nevada is its restrictive infrastructure. While the region has experienced significant growth and attracted new business, the existing infrastructure, such as roads, utilities and housing, has struggled to keep pace with the demands of rapid development.
What’s the economic outlook for next year and the next three years?
The outlook for Northern Nevada is promising. With the rate cut that came this September, the economic cycle is likely to ease toward a more neutral stance, reducing financial pressures and making it easier for businesses and investors to operate. Over the next year, this shift should help stabilize the market, providing some immediate relief. Over the next three years, this trend positions the region to greatly benefit from increased deal flow as financial conditions improve.
Jeff Sutich, executive director, Northern Nevada Development Authority
What are the biggest economic challenges and hurdles facing Northern Nevada?
While experiencing significant economic growth in recent years, Northern Nevada still faces several challenges and hurdles that could impact its continued development. The biggest economic challenges affecting the region are infrastructure and affordable/available housing. Currently, due to significant industrial growth, where industries such as manufacturing and data centers require available infrastructure, we are working closely with NV Energy and local governments to create infrastructure systems that will support this growth. Hand in hand with economic growth, we are seeing population growth within the region, and housing supply has not kept pace with the demand. Short supply causes issues with affordability of homes, and when you combine that with inflation, increase in construction costs and materials, and limited land available for development, one can see how home prices and rental rates are increasing and causing challenges for the region.
Another important challenge, not only for Northern Nevada, but also for other states, is workforce shortage and skill gaps. As we are working to bring new companies to start operations in Northern Nevada or assisting existing companies to expand operations within targeted industries, such as advanced manufacturing and high technology, there is a growing need for a more skilled workforce. However, there are gaps in areas such as engineering, information technology, and skilled trades like electricians.
What's the economic outlook for next year and next three years?
Even with the challenges related to housing affordability, infrastructure strain and workforce development, the economic outlook for Northern Nevada over the short-term (one year) and the medium term (within the next three years) is generally positive, driven by ongoing investments in key industries such as technology, advanced manufacturing, logistics and renewable energy.
Northern Nevada is expected to continue to benefit from investments in high-tech sectors, especially due to the presence of companies like Tesla, Panasonic, Switch, Amazon, Google, Click Bond, Lilac Solutions, American Battery Technology, Redwood Materials, etc. This advanced manufacturing sector, including electric vehicle battery production and related technologies, will likely remain a key growth engine of economic activity.
Our region's strategic location as a logistics hub and proximity to the Silicon Valley innovation ecosystem make it an attractive site for companies looking to expand or relocate. The success of innovation-focused initiatives like the Tech Hub and NSF Engine projects will also boost growth in research and development. NNDA is the lead entity on the UNR Tech Hub Supply Chain Enhancement project and will work diligently with UNR, WNC, Manufacture Nevada and other associations and partners to support bringing these types of the companies to Northern Nevada and continue this economic development growth.
For the last decade, NNDA has been working hand in hand with GOED on efforts to diversify the region away from traditional industries, and today we can see new sectors such as technology, advanced manufacturing and renewable energy starting to dominate the economic landscape of Northern Nevada. Our efforts in years to come (three years) will be to continue this diversification and attract high-tech and innovation-driven industries.
Collaboration with UNR, DRI, WNC, DETR, NevadaWorks, expansion of apprenticeship programs, vocational trainings, and participation in programs like the Tech Hub and NSF Engine, and most importantly, collaboration between private companies, will be crucial to create and maintain the workforce talent needed to sustain this growth.
What ongoing projects is Northern Nevada Development Authority involved in that will be the most impactful for Northern Nevada?
Northern Nevada Development Authority plays a critical role in driving economic development and diversification in the region, particularly across the counties of Carson City, Douglas, Lyon, Storey and Mineral, but we also place strong emphasis on fostering economic growth in the rural areas.
NNDA is focused on attracting and growing advanced manufacturing firms and high-tech companies, which are critical to diversifying the regional economy. We assisted companies like Novva, Google, AVK, Lilac Solutions, and more recently, Inneos, a chip components manufacturing company. This includes efforts to support the Tahoe-Reno Industrial Center and support development of other industrial hubs, such as Northern Nevada Industrial Center in Silver Springs and Victory Logistics District in Fernley.
Since 2014, NNDA has managed multiple EPA Brownfield grants. With this grant, we are able to assist with redevelopment and revitalization of underutilized and vacant industrial or commercial facilities. By managing this grant, a total of nearly $2.3 million was directly invested into different properties throughout the region between 2014 and now.
For brownfields, which have successfully completed the assessment process, EPA has granted NNDA permission to use some of the grant funds to cover the cost of getting eligible sites certified through its Certified Sites program which provides “shovel ready sites” that have undergone a rigorous pre-qualification process to become immediately available to companies when they are moving to Nevada or expanding operations to Nevada. These sites do the initial due diligence on infrastructure, zoning and have all the paperwork clear and ready. These projects and sites are aimed at increasing the region’s capacity to house new companies and expanding industries. Some of NNDA certified sites are: the Port of Nevada, Victory Logistics District and Buckeye Industrial Park in the Carson Valley.
When UNR received the Tech Hub Designation, NNDA was designated as the EV Supply Chain Enhancement lead with the goal to identify supply chain gaps, onshore businesses, attract international companies to Northern Nevada, and help home grow high-tech local businesses to fill the identified gaps.
NNDA recently was awarded a $6.2 million DOT RAISE Grant to support the due diligence of creating an inland port at the Port of NV site. These are just some of the ongoing projects that NNDA is involved in.
Jeff SutichAndrew Haskin, Lyon County manager
What is the biggest economic challenge/hurdle facing Lyon County?
Infrastructure is the biggest challenge. Housing and utility infrastructure is needed to ensure the continued growth of our communities in Northern Nevada. Additionally, workforce and workforce development are also challenges for the county.
What's the economic outlook for next year and the next three years?
We will continue to see strong industrial, commercial, and residential interest in Lyon County and Northern Nevada. With so much demand for onshoring manufacturing, the USA will need to more than double its manufacturing capacity to meet this demand. States and regions that can provide the needed infrastructure, workforce and housing will benefit greatly from this movement.
What ongoing projects is the county involved in that will be the most impactful?
Lyon County has been working to streamline processes and make it easier for industrial and commercial projects to locate here. The county has implemented mass grading permits to allow for on-site grading before the permit for the overall building permit is issued. We are prioritizing commercial and industrial building permits to reduce lead times for companies. The county is working with NV Energy to bring in the needed infrastructure to meet the growing demand in the electrical space. We are also working on a Lands Bill to acquire land for much needed infrastructure improvements and economic development. While leaning in to proactively accommodate growth and development, Lyon County continues to prioritize the historic and cultural preservation of our existing communities.
Andrew Haskin
